U.S. Dollar Index
A hedger in the USD
index market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual USD
index. Hedging is possible because the USD index cash prices and USD index futures prices tend to move in the same direction.
However, the difference between the cash price and the futures price may narrow or widen. The change in the difference between
the cash price and the futures price is called basis risk. Because of the changing basis no hedge can be perfect.
Where can you hedge USD index?
USD index can be hedged on the Intercontinental (ICE). The ICE offers a competitive and transparent market place
to engage in efficient hedging strategies. If you are interested in hedging USD index please contact us. One of our experienced USD index traders will be happy to give you a call to discuss hedging strategies with you.